• Contact Us
  • About
  • Advertise
  • Privacy & Policy
Thursday, September 18, 2025
  • Login
E3P Motor Insurance
  • Home
  • Insurance
  • Pension
  • Business Unlimited
  • OIL & ENERGY
  • Feature
  • News
  • Home
  • Insurance
  • Pension
  • Business Unlimited
  • OIL & ENERGY
  • Feature
  • News
No Result
View All Result
Business Post
No Result
View All Result
Home Insurance

Massive Verdict In Business Interruption Insurance Case

Nwanne Ikemefune by Nwanne Ikemefune
February 11, 2021
in Insurance
0 0
0
Massive Verdict In Business Interruption Insurance Case
0
SHARES
137
VIEWS
Share on FacebookShare on TwitterShare on WhatsApp

It’s here – the moment that the insurance industry and consumers have been waiting for since the early days of the Covid-19 pandemic – the final ruling on the appeal of the Financial Conduct Authority (FCA)’s business interruption case in the UK. It’s a ruling that is likely to have major repercussions for the insurance industry internationally – and it didn’t go insurers’ way.

In its judgment, the Supreme Court chose to substantially allowing the FCA’s and the Hiscox Action Group (HAG)’s appeal and dismissed insurers’ appeals.

The Supreme Court noted that the case was brought forward by the FCA to appeal certain issues on which it did not succeed in the High Court cases, along with HAG. Six insurance companies also appealed the decision of the High Court on other issues and also responded to the FCA’s appeal. The insurers were Arch Insurance (UK) Limited, Argenta Syndicate Management Limited, Hiscox Insurance Company Limited, MS Amlin Underwriting Limited, QBE UK Limited and Royal & Sun Alliance Insurance Plc (RSA). Zurich Insurance Plc, was also a respondent to the FCA’s appeal, but did not separately appeal the decision of the court.

The court addressed the issues arising on the appeals of the FCA with respect to six areas:

1, The interpretation of “disease clauses”

2. The interruption of “prevention of access” clauses

3. The question of what causal link must be shown between business interruption losses and the occurrence of a notifiable disease

4. The effect of “trends clauses”

5. The significance in quantifying business interruption losses of effects of the pandemic on the business which occurred before the cover was triggered

6. In relation to causation and the interpretation of trends clauses, the status of the decision of the Commercial Court in Orient-Express Hotels Limited v Assicurazioni Generali SpA (trading as Generali Global Risk)

Commenting on the fact that the Supreme Court has backed policyholders in the FCA test case judgment, Richard Leedham, partner at Mishcon de Reya, the firm which represents the Hiscox Action Group, said he is glad the court has found that the vast majority of policyholders of non-property damage BI cover will have cover for their business interruption losses caused by the national response of Government to Covid-19.

“This includes most of the members of the Hiscox Action Group, whom we represented in the case,” he said, “and RSA and now all QBE policyholders whom we represented at first instance through my partner Sonia Campbell and Hospitality Insurance Group Action.”

He cited this as recognition by the Supreme Court that, when this cover was needed most by thousands of UK businesses, insurers did not have the right to argue that coverage was only applicable where narrow local restrictions were in place or to deny claims because the cover had not been intended to be provided, or because the interruption and losses would have occurred in any event.

“The judgment should be a massive boost to all businesses reeling from a third lockdown who can now demand their claims are paid,” Leedham said. “The hope and expectation of our clients is that the claim adjustment process starts immediately and that insurers will not continue to cause further distress by further unnecessary delay.”

Meanwhile, Manoj Vaghela, partner at Charles Russell Speechlys noted the impact of Covid-19 on businesses and said today’s ruling helps signal some light at the end of the tunnel.

“Although insurers argued that you could not simply rewrite the insurance contract to expand the scope of indemnity, it is a relief to see that the Supreme Court has shown a willingness to develop a new line of law on this occasion to support businesses,” Vaghela said. “In practical terms, this allows businesses to recover losses caused by Covid-19 cases within, for example, a certain radius of their premises even if it would still have suffered loss of turnover because of Covid cases outside of that area,”

Paul Smethurst, partner and forensic investigation specialist at accountancy firm, Menzies LLP, highlighted that, while today’s Supreme Court ruling provides clarity for many claimants, it is unlikely to provide a clear-cut resolution for all.

“There are still a number of untested issues,” he said, “which could give rise to further litigation. For example, the question of aggregation and whether insurers should accept that the disruption caused by the pandemic is one event or more.”

Source: Insurance Institute America By Mia Wallace
Previous Post

Sovereign Trust Hauls A- Rating In A Decade

Next Post

HEIRS Holdings Lands 45% OML 17 From Shell, Total, Eni

Nwanne Ikemefune

Nwanne Ikemefune

Related Posts

NCRIB Briefs NAICOM on Leadership Continuity, Steady Collaboration
Insurance

NCRIB Briefs NAICOM on Leadership Continuity, Steady Collaboration

September 18, 2025
NIIRA Euphoria Gets Experts Craving For Unmatched Insurance Contribution to National Growth
Insurance

NIIRA Euphoria Gets Experts Craving For Unmatched Insurance Contribution to National Growth

September 18, 2025
Omosehin
Insurance

Growing Economy, Collaborative Regulatory Synergy Takes Centre Stage

September 17, 2025
Next Post
elumelu

HEIRS Holdings Lands 45% OML 17 From Shell, Total, Eni

Please login to join discussion
NEM INSURANCE NEM INSURANCE NEM INSURANCE
  • Trending
  • Comments
  • Latest
Loss Adjusters Receive Charge To Match Speed Of New Developments

Loss Adjusters Receive Charge To Match Speed Of New Developments

April 27, 2024
tope smart NIA former chairman

Insurance Milestone: A Beacon To Follow

April 3, 2022
Custodian Investment To Acquire 51% Stake In UACN Property

Penetration: Operators Call For Insurance-In-Action

November 2, 2022
NCRIB And Universal In Pictures

NCRIB And Universal In Pictures

May 4, 2024
Reinsurance Rates May Increase Into 2022, But Momentum To Wane: Fitch

Reinsurance Rates May Increase Into 2022, But Momentum To Wane: Fitch

April 13, 2021
ncrib logo

NCRIB Sets The Stage For Adaramola’s Tenure

June 7, 2023
Preferred PenCom Logo

PenCom Board Crafted To Hedge Setback

February 1, 2021
Linkage Assurance Aligns With Brokers For Growth

Linkage Assurance Aligns With Brokers For Growth

December 6, 2021
PTAD Wipes 21,227 Parastatals Pensioners From Payroll

PTAD Wipes 21,227 Parastatals Pensioners From Payroll

January 31, 2021
Preferred PenCom Logo

PenCom Board Back-To-Work Pass, Gets Tick Over

May 4, 2025
Anchor MD Loses Father

Anchor MD Loses Father

2
Regulators Clear Guinea Insurance  For Private Placement

Regulators Clear Guinea Insurance For Private Placement

2
NAICOM Helmsman Thomas Leads African Insurance Supervisory Authorities

NAICOM Inaugurates Discount Rate Committee To Ease Insurance Contracts Under IFRS 17

2
Insurance Mastercard Joe Irukwu Passes On

Insurance Mastercard Joe Irukwu Passes On

2
AIICO Head office

Car Insurance Takes A New Turn With AIICO, ETAP ‘Redefine Partnership’

2
Authenticity Of Motor Policy, Technology Crowns Policyholders Verifying Partners

Authenticity Of Motor Policy, Technology Crowns Policyholders Verifying Partners

2
NAICOM Helmsman Thomas Leads African Insurance Supervisory Authorities

NAICOM Helmsman Thomas Leads African Insurance Supervisory Authorities

2
Ebere Nwoji Makes It Back To Back As 2023 Print Media Reporter

Ebere Nwoji Makes It Back To Back As 2023 Print Media Reporter

2
Loss Adjusters Receive Charge To Match Speed Of New Developments

Loss Adjusters Receive Charge To Match Speed Of New Developments

2
NAICOM Helmsman Thomas Leads African Insurance Supervisory Authorities

Federal Government & NAICOM Working On New Guidelines For Insuring Government Assets

2
NCRIB Briefs NAICOM on Leadership Continuity, Steady Collaboration

NCRIB Briefs NAICOM on Leadership Continuity, Steady Collaboration

September 18, 2025
NIIRA Euphoria Gets Experts Craving For Unmatched Insurance Contribution to National Growth

NIIRA Euphoria Gets Experts Craving For Unmatched Insurance Contribution to National Growth

September 18, 2025
Ondo Transformation: Aiyedatiwa Primes Pension Funds as Lifeline For Infrastructural Development

Personal Pension Plan to Replace Struggling Micro Pension Plan – PenCom

September 18, 2025
Omosehin

Growing Economy, Collaborative Regulatory Synergy Takes Centre Stage

September 17, 2025
Rex Insurance Chairman Calls For Stronger Insurance And Pension Frameworks For Economic Acceleration

Rex Insurance Chairman Calls For Stronger Insurance And Pension Frameworks For Economic Acceleration

September 17, 2025
SDGs Synergy Initiative Courts NAICOM Support to Deepen Insurance Awareness Among Youths

SDGs Synergy Initiative Courts NAICOM Support to Deepen Insurance Awareness Among Youths

September 17, 2025
NAIPE’ Landmark Confab Holds Tomorrow, Puts Insurance & Pension as Economy Accelerators

NAIPE’ Landmark Confab Holds Tomorrow, Puts Insurance & Pension as Economy Accelerators

September 15, 2025
Catholic Priest Implores  Nigerians Not to Downgrade Own Security Amidst Heightened Insecurity

Catholic Priest Implores Nigerians Not to Downgrade Own Security Amidst Heightened Insecurity

September 14, 2025
AIICO Insurance Launches Recycling Project For a Greener Future

AIICO Insurance Launches Recycling Project For a Greener Future

September 13, 2025
Leadway Holdings Becomes Dominant Pension Investor Acquires PAL Pensions

Leadway Group X-rays Nigeria’s New Tax Reforms and Compliance Strategies

September 13, 2025
ADVERTISEMENT

Recent News

NCRIB Briefs NAICOM on Leadership Continuity, Steady Collaboration

NCRIB Briefs NAICOM on Leadership Continuity, Steady Collaboration

September 18, 2025
NIIRA Euphoria Gets Experts Craving For Unmatched Insurance Contribution to National Growth

NIIRA Euphoria Gets Experts Craving For Unmatched Insurance Contribution to National Growth

September 18, 2025
Ondo Transformation: Aiyedatiwa Primes Pension Funds as Lifeline For Infrastructural Development

Personal Pension Plan to Replace Struggling Micro Pension Plan – PenCom

September 18, 2025
Omosehin

Growing Economy, Collaborative Regulatory Synergy Takes Centre Stage

September 17, 2025
Rex Insurance Chairman Calls For Stronger Insurance And Pension Frameworks For Economic Acceleration

Rex Insurance Chairman Calls For Stronger Insurance And Pension Frameworks For Economic Acceleration

September 17, 2025
SDGs Synergy Initiative Courts NAICOM Support to Deepen Insurance Awareness Among Youths

SDGs Synergy Initiative Courts NAICOM Support to Deepen Insurance Awareness Among Youths

September 17, 2025
NAIPE’ Landmark Confab Holds Tomorrow, Puts Insurance & Pension as Economy Accelerators

NAIPE’ Landmark Confab Holds Tomorrow, Puts Insurance & Pension as Economy Accelerators

September 15, 2025
Catholic Priest Implores  Nigerians Not to Downgrade Own Security Amidst Heightened Insecurity

Catholic Priest Implores Nigerians Not to Downgrade Own Security Amidst Heightened Insecurity

September 14, 2025
AIICO Insurance Launches Recycling Project For a Greener Future

AIICO Insurance Launches Recycling Project For a Greener Future

September 13, 2025
Leadway Holdings Becomes Dominant Pension Investor Acquires PAL Pensions

Leadway Group X-rays Nigeria’s New Tax Reforms and Compliance Strategies

September 13, 2025
Image Spin: ENACTUS NIGERIA@25 Honours Sovereign Trust Insurance Plc

Image Spin: ENACTUS NIGERIA@25 Honours Sovereign Trust Insurance Plc

September 13, 2025
Insurance Industry Regulator, Operators Focus on Collective Action, Sustainable Growth, Social Viability

Insurance Industry Regulator, Operators Focus on Collective Action, Sustainable Growth, Social Viability

September 11, 2025
Microphone

NAIPE 10th And Agenda Setting Conference Earns Insurance & Pension Wide Endorsements

September 11, 2025
Leadway Assurance Pays N67.1bn Claims In 2023

Vulnerable Farmers Get Agricultural Insurance Solutions From Leadway Assurance, State Governments And Partners

September 11, 2025
NEM Insurance NEM Insurance NEM Insurance
Business Post

We connect brands with buyers and sellers of insurance, pension and also project insurance and allied Businesses to the trending generation. We help the various public to adapt to the constant changes as it would impact, and also enable advertisers to connect, engage and target opportunities on line , in print and in person.

Browse by Category

  • Business Unlimited
  • Feature
  • Insurance
  • News
  • OIL & ENERGY
  • Pension
  • Travel
  • Uncategorized

Recent News

NCRIB Briefs NAICOM on Leadership Continuity, Steady Collaboration

NCRIB Briefs NAICOM on Leadership Continuity, Steady Collaboration

September 18, 2025
NIIRA Euphoria Gets Experts Craving For Unmatched Insurance Contribution to National Growth

NIIRA Euphoria Gets Experts Craving For Unmatched Insurance Contribution to National Growth

September 18, 2025
  • About
  • Advertise
  • Privacy & Policy
  • Contact

© 2023 BusinessPost

No Result
View All Result
  • Home
  • Insurance
  • Business Unlimited
  • OIL & ENERGY
  • Feature
  • News
  • Contact Us
  • About
  • Advertise
  • Privacy & Policy

© 2023 BusinessPost

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In